Materials

MetalsTech’s scoping study for EU Sturec gold-silver mine posts resource over 1Moz

Wed 03 Aug 22, 12:29pm (AEST)
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Key Points

  • The Sturec project Scoping Study reflects over 1Moz of gold and silver recoverable, still less than two thirds total JORC resource
  • Life of mine reflects an initial 15 year operational period with a value of $650m after tax
  • Another resource upgrade is on the cards following an upcoming diamond drilling campaign

MetalsTech (ASX:MTC) shares have climbed over 12% in morning trades as the company publishes its scoping study for the Sturec gold project in EU member state Slovakia. 

The big takeaway? Over one million ounces of gold and silver concentrate. Investors should note that the scoping study resource is less than two thirds of the existing JORC resource on-site. 

A resource upgrade for Sturec is on the horizon, with diamond drilling to commence on-site in the near future. 

So far, for investors, there was already a lot to like about the project before the scoping study was published. 

Gold mineralisation starts at surface at some locations on-site, and seriously thick drill intersections (as in, over 150m) were proven to show consistent gold mineralisation continuing at depth. 

What are the main points of the study? 

The Sturec project has been given the following credentials: 

  • Pre-tax value of $853m 

  • Post-tax value of $650m 

  • 15 year Life of Mine (LoM) 

  • Pre-production spend of $93.27m 

  • Total pre-tax cashflows of $1.5bn 

  • Internal rate of return at 102.5% 

  • Capital payback of 2.3 years from first production 

  • Total capital cost of $119m 

The company notes it is well-poised to maintain a low opex profile across the LoM with processing plant infrastructure being manufactured in China minimising costs needed to get the project rolling.

What comes next? 

The company is to commence Phase IV diamond drilling on-site to better refine and prioritise drill targets. That data will also go towards another JORC resource upgrade for the project. 

Existing drill runs are still held with assay laboratories, meaning MetalsTech will have more data to announce investors through the remainder of 2022, both for the Phase IV run and prior. 

Once it has completed Phase IV drilling and received all assay results, MetalsTech is then to move ahead to a Pre-Feasibility Study for the Sturec project. 

How are investors liking MetalsTech? 

Even a surface look at MetalsTech’s financial performance this year shows a palpable interest from investors in the company’s Slovakian operations. 

  • One year returns sit at 125.4% 

  • Year to date performance reflects a growth of 41.2% 

  • MetalsTech is outperforming the materials sector by 125% 

  • MetalsTech outperforming ASX200 by 132% 

The company’s market cap currently sits at $68m. 

Worth noting is that the company only had $2.1m in cash at the end of the June quarter, meaning there will likely be a raising event of some description on the horizon. 

That could be good news for shareholders: there will likely be opportunity to buy more shares at a discounted price.

MetalsTech has consistently outperformed the materials index for the last three months, and an upward swing is evident in the August price movements
MetalsTech has consistently outperformed the materials index for the last three months, and an upward swing is evident in the August price movements
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. MetalsTech was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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